Monday, 22 August 2011

Pensions Auto-Enrolment

There is a lot of stuff on the net about this and how it’s a major change. For once, you do need to believe (some of) the hype.

It is a big deal and it will have an impact on Pensions and Payroll administration.

The requirement is that employers will soon need to enrol employees into a pension scheme as the name suggests, automatically. So far so good, but as with all things legislative, there’s a degree of complexity. For one thing, there’s a requirement to check earnings each period and determine if they are above or below a threshold.

In short, the requirements are going to affect both pensions and payroll administration functions and any systems they use.
Every employer needs to be thinking about how they will approach this – even if it’s just to pick up the phone to suppliers and ask “what are you doing about this”.

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